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About BMGI
Breakthrough Management Group International (BMGI) is the leaders in helping organizations to transform their business performance using Methodologies and Principles of Lean, Six Sigma, and Innovation We work with our clients to improve bottom-line results and fuel top-line growth by identifying and unlocking the potential opportunity areas in the organization.
Strategy Deployment
Hoshin Kanri Balanced Scorecard
Faculties
Nirmalya Banerjee Shubhrangshu Barman Roy
- Examiner for Shingo Excellence Award -Direct Acolyte of Sensei Masaaki Imai and Lean Master - Proven success in Organizational Transformation - Expertise in Process and Organizational Assessments, and deploying Strategy - Extensive experience in Training and successful implementation of Kaizen and Kaikaku - Thought Leader in Lean Applications in Construction and IT
Asking Questions Use the Raise Hand icon or Question / Chat box in the lower right corner. Submit questions as they occur to you by typing in the box, then click submit Questions will be answered during Q&A session at the end of the presentation.
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Contents
1. Hoshin Kanri - Meaning 2. Background 3. Hoshin Kanri- Basic Elements 4. Why Hoshin Kanri? 5. Hoshin Kanri Road Map & 4/8 Model for experiments 6. Phases of Hoshin Deployment The X- Matrix Catchball Process 7. Conclusion
Policy
Deployment
Hoshin Deployment is a tool used to facilitate the creation of business processes that result in a sustained competitive advantage in Quality, Delivery, Cost& Innovation.
Business Goals Site Goals
Department al Goals
Individual Goals
Background
1990s
1970
1964
Toyota & Komatsu combine Bridgestones version and their own innovative implementations of Cross Functional Management and daily control of QCD
1958
Bridgestone Tyre coined the term Hoshin Kanri and published Hoshin Kanri manual which codified principles of Hoshin based on learning from Deming Prize winners Japanese Union of Scientists and Engineers (JUSE) added Policy & Planning to Deming Prize Checklist as part of their implementations of TQM
1950
Japanese companies struggling with structural changes to become competitive in the open, postwar economy
- A system to translate the vision into tangible and measureable objectives for achieving the breakthrough
- Alignment created by cross functional planning to achieve short term (yearly)objectives -Fosters learning through the review process -Catchball as the driving force of alignment, clarification and employee involvement. - At the heart of the Hoshin Process is the PDCA cycle of Continuous Improvement
Top Management
plan act do
act
act check
act check
do
check
check
PQCDSM Objectives
Aligned Organization
High Performance
-Hoshin Kanri
- helps transform any organization - key to superior organizational learning - sets direction to make customers happy / beat competition - involves & aligns everyone in the organization
Hoshin Kanri
Supply Chain Integration
Lean/TQM systems
Scan environment -Porter matrix -Product/market matrix -Market/Technology Matrix -VS Profit/Loss statement -Business Assessment -VSMs
Build Mid-Term strategy and the Annual Plan -Identify 3- 5 year breakthrough opportunities - Identify 6-12 months tactics -Establish annual targets for process & Results -Involve Tactical Teams & Operational Teams by playing CATCHBALL -Complete & Confirm action paths
-Finalize project plans -Develop leaders -Eliminate waste and variability -Implement improvements. -Standardize reporting / review mechanism
-Daily Management -Check progress -Self-diagnosis -Analyze and score achievement -Recognize achievement -Make corrections if any
-Promote adherence to standard process -Develop leaders and make succession plan -Train, coach & mentor -Repeat Hoshin cycle
Hoshin Team
Concrete plan that aims over the next 12 to 18 months which will help us achieve our Mid-term Breakthrough Objectives
Functional Teams
Campaigns
Operations
Action Teams
Problem solving & Implementation to address Waste, Defects & abnormalities as well as improvements resulting from employee suggestions.
PLAN
DO
CHECK
ACT
Scan environment -Porter matrix -Product/market matrix -Porters Five Forces -BCG Matrix -VS Profit/Loss statement -Business Assessment -Value Chain Analysis -Strategic Audit
Action Teams
-Daily Management -Check progress -Self-diagnosis -Analyze and score achievement -Recognize achievement -Make corrections if any
Action Teams
-Promote adherence to standard process -Develop leaders and make succession plan -Train, coach & mentor -Repeat Hoshin cycle
1 2 3
BCG Matrix
-Document the research, analysis & breakthroughs you do for the market & industry -After the SCAN , the Hoshin team is ready to move to PLAN Phase
-Hoshin team begins to build the Midterm Strategy and Annual Hoshin. -The team chooses breakthrough objectives to eliminate specific gaps between companys vision and its current capabilities.
Identify Potential Breakthroughs Prioritize Breakthrough Opportunities Analyze Promising Opportunities
The X-Matrix
The X-Matrix
Identify Opportunities
Hoshin Team
XM
BC R5
R2
Functional Teams
XM Mktg
XM Engg
XM Manuf
BC
R4
R3
Per.Ex Teams
AP
TPM
AP
Lean
Projects/Campaigns
Action Teams
Rounds of Catchball
DI
DI
Daily Improvements
Rx
DO
Example
Learning by Doing
DO
Change Culture
Education
At all Levels
Implementation
-Finalize implementation plans -Eliminate Waste/Variability/Fatigue -Use STM techniques -Actions Teams are required at all levels
EASIER
BETTER
Objectives of Improvement
CHEAPER
FASTER
Cultural Audit
Limitations: -Complete Involvement & Commitment required. Difficult in some cultures -Needs long term commitment, patience and support from Top Management -Because, its a learning process, at times it is slow
New Thinking
If you always DO what youve always DONE, youll always GET what youve always GOT
Yogi Berra, Baseball Philosopher
If you always THINK what youve always THOUGHT, then youll always DO what youve always DONE, and youll always GET what youve always GOT.
Greg Howell, Co-founder LEAN Construction Institute
Closing Thought
The Greatest Mistake we make is living in constant fear that we will make one
Questions?
BMGI Today
BMGI Facts & Figures
World Leader in Performance Excellence Global headquarters in Longmont, CO USA with 15 International Offices Over 200 active clients worldwide Over 100 successful deployments worldwide More than 150 full-time consultants across the globe
$
200+ World-Wide Customers $15+ Billion in Benefits